5 Ways Starbucks Is Different In China

Starbucks is planning a massive expansion in China over the next
couple years that will nearly double its locations in the
country.

It might seem risky for a
coffee company to expand so aggressively in a culture of
tea-drinkers. But Starbucks has altered its stores and products
to adapt to local tastes and the strategy appears to be
working.

The company's same-store sales
grew 7% in the region for the most recent quarter and it's
planning to open 500 new locations in China by the end of the
year, which would make China Starbucks' second largest market
outside the U.S.

Here's a few ways that
Starbucks is doing things differently in China:

1. The stores are
bigger with more seating space. "Unlike Americans,
who can’t cope without a morning cup of joe, most Chinese
customers don’t just grab and go," writes Violet Law in the
Global Post. "Instead, coffee shops here
are a destination. People sit back and chat with friends and
family. Some come to meet with clients or do business."

While most Starbucks stores in
the U.S. are hectic and bustling, Chinese consumers seek out
Starbucks to "nurse
their drinks and lose themselves in their laptops... enjoying
tranquility that's usually elusive in teeming China," Law
writes.

2. The coffee is more
expensive. Starbucks charges up to 20% more for its
coffee products in China compared to other markets. The Chinese
state media has attacked Starbucks for this practice, but the
company says the prices are due to the higher costs of doing
business in the country.

3. Starbucks stores in
China offer a menu of Chinese teas and treats like
mooncakes. Butone of the
best-selling item in the region right now is actually a
Strawberry Cheesecake Frappucino, which is topped with a
cream cheese whipped cream, graham cracker crumbles, and
strawberry syrup. The frappuccino "set instant records for
the top-selling limited-time Frappuccino offering ever,"
Starbucks chief operating office Troy Alstead said on a recent
earnings call.

Starbucks China

4. The food is labeled with
the country where it was imported from to address Chinese
consumers' concerns about food safety.

5. Starbucks management
makes an effort to get to know employees' families.
"Starbucks has ... factored in family dynamics and expectations
in China, where success can be judged by the title on one’s
business card," the company said in a statement.
"Family forums have been
held for parents of store partners to hear managers discuss
gratifying career paths at Starbucks."